More Related Content Similar to What's Really Going On In Marketplace Similar to What's Really Going On In Marketplace (12) More from National Restaurant Association More from National Restaurant Association (20) What's Really Going On In Marketplace1. Yankelovich MONITOR
®
2007/2008
Passion for PRECISION
The Consumer Empowerment
Revolution Hits Full Stride
Yankelovich © 2007/2008 1 3. Current Outlook
But…do consumers still
feel in control with the
uncertain, even anxious,
economic prospects ahead?
Yankelovich © 2007/2008 3 4. Economic Anxiety Levels Are Rising
January ‘08 April-May ’08*
None 10% 3%
35 15
Low 25 12
Moderate 32 31
High 19 33
24 54
Severe 14 30
* April-May ’08 source: Yankelovich When Advertising Works survey
of 1,512 consumers 18 and older
4 5. Things That Are Getting Worse
Dollars and When Advertising
Consumer Sense, Works,*
January 2008 April-May 2008
Selected items: Very/fairly worried Very/fairly worried
Cost of gasoline 75% 83%
Having enough money to retire on 43 64
Keeping up with the cost of living 39 73
Getting out of debt 27 48
Having enough money to put food
on the table 17 42
* April-May ’08 source: Yankelovich When Advertising Works survey
of 1,512 consumers 18 and older
5 6. Pinching a Few Pennies, At Least
Dollars & Consumer Sense
MONITOR Perspective Degree of spending Degree of
January 2008 cuts made in spending cuts
last few months planned in 2008
None 42% 22%
A little 13% 27%
Moderate 23% 31%
A lot 21% 19%
Yankelovich © 2007/2008 6 7. Dollars & Consumer Sense Value Planning Model
Where the economy
stacks up Concerns/worries
moderated by
Income/coping skills
results in
A snapshot of the
consumer mindset Economic anxiety
moderated by
Shopping styles
results in
What consumers will
do/pay for Value trade-offs
Yankelovich © 2007/2008 7 8. Shopping Styles Are Influenced by Anxiety
• As economic anxiety rises, consumers migrate away from
styles that expose them to economic risks
Level of Economic Anxiety
Mode-
None Low rate High Severe
% % % % %
I shop only when I have to 74 82 85 90 97
I buy generic or store brands whenever possible 58 73 75 78 90
I stick to a plan or list when making purchases 67 73 76 79 71
I shop around to get the best price on the
things I need 62 63 75 74 83
8 9. Dining Value Trade-Offs by Economic Anxiety
Level of Economic Anxiety
Mode-
None Low rate High Severe
Other Food Related Trade-Offs % % % % %
To save money, cook from scratch rather than
purchase foods that are already prepared 39 54 58 67 71
(Less likely to) Go out to eat for lunch 23 36 49 64 66
(Less likely to) Go out to eat for dinner 18 36 40 55 67
When dining, choose less expensive items to
save money 21 27 38 52 66
Eat out at less expensive restaurants 15 32 37 39 49
9 10. Approaching anxious consumers
Consuming only when necessary is the style most affected
by consumer anxiety
• With greater anxiety comes a desire to curtail unnecessary (read:
frivolous) shopping
• Avoiding the appearance of frivolity is essential to staying in
consumers’ consideration set
• However, there are still opportunities for brand names, impulse
purchases, one-stop convenience, time savings, etc., as long as they
can be positioned to fit with an increasing focus on necessities
• Position dining as an ‘affordable necessity’ during stressful times
10 11. Mitigating Anxiety During a Downturn
There are some opportunities (albeit limited ones) for
marketers to do more than just react to changes in
consumer spending patterns
1. Consider targeting consumers who see themselves as more
competent and more in control
2. Target at higher income levels given their somewhat greater
psychological resiliency in the face of economic uncertainty
3. Remind consumers of what they already believe — that they are
smart and in control
4. Offer help and assistance, even partnering with consumers where
possible, to put consumers back in control
11 12. And…Still In Control, Good Times or Bad
2007 2008
Yankelovich Dollars &
Describes you… MONITOR Consumer Sense
As self-reliant as possible 79% 88%
In control of my life 67 % 80 %
Yankelovich © 2007/2008 12 13. A marketer-driven world A consumer-driven world
Outside‐In Inside‐Out
Economy Economy
Consumers Marketers
are dependent take direction
Control is Control rests
corporate with consumers
All business Very personal
Yankelovich © 2007/2008 13 14. Consumers Take Control
Auto
Dealer cost structures
made public, cars by RFP
$$$$
Day traders, mortgages/
loans by RFP
TV
Time-shifting, ad
avoidance
Yankelovich © 2007/2008 14 15. Information-Savvier Consumers
I always know how to Important in your personal
get the information I
get the information life today: Researching a
life today: Researching
need to make decisions product before buying it
61% 75% 44% 61%
2002 TODAY 2004 TODAY
I know more about the
products being sold in stores
than the people selling them
48% 53%
2005 TODAY
Yankelovich © 2007/2008 15 16. Locus of Control, Expertise, Authority
• In Charge: Directing, Advising, Guiding
Extremely/very important to the
way others see you: Someone who
gives smart advice
67 %
TODAY
Yankelovich © 2007/2008 16 17. Smarter Than the Average Bear
%
I think my IQ is
higher than average
2005 Yankelovich MONITOR Financial Services Study
Yankelovich © 2007/2008 17 18. Expectations of More Control
• Self-Reliance
Agree more with “following your own
instincts” or “listening to experts”
Following your own instincts
61% 74%
2002 TODAY
Yankelovich © 2007/2008 18 19. Expectations of More Control
• Passionate Involvement
Extremely/very important to the
way others see you: Passionate
about the things you care about
61% 73%
2003 TODAY
Yankelovich © 2007/2008 19 20. Expectations of More Control
• Marketing Resistance
Extremely/very important to
the way others see you: Someone
who can always see through
exaggeration and hype
38% 56%
2002 TODAY
Yankelovich © 2007/2008 20 21. Expectations of More Control
• Authenticity & Honesty
Extremely/very important to the
way others see you: Someone who
tells the truth no matter what
72% 82%
2003 TODAY
Yankelovich © 2007/2008 21 22. Gasoline
price alerts
Carbon
footprint
meters
Nutritional guides & data
Price comparisons
Yankelovich © 2007/2008 22 26. New Ways to Manage Money
Yankelovich © 2007/2008 26 27. Thought-Starters
• Open up access to information
• Share an “insider’s” view
• Be an aggregator of relevant information,
especially nutritional
• Make information engagement “special” – for
connossieurs, for VIPs, for loyal customers, for
experts, easy to share and show off to others
• Give customers control over information
• Host communities that invite criticism and shared-
help solutions (people will brag on you there, too)
• Up-to-the-minute status reports on a location
• Teach them “relevant” evaluative criteria
Yankelovich © 2007/2008 27 28. Thought-Starters
• Open up concepts to customer-generated
recombinations
• Easy to facilitate in marketing communications
• Harder to do in menu choices, but potentially a
bigger return in customer engagement and loyalty
• Every visit is thus not the same, but instead is a new
experience, even adventure
• Provides customers with more ways to find relevance
and chances to visit
• Multi-sensory and design components can personalize
• iPod cradles at each table (with appropriate limits)
• Personal video screens for ordering and entertainment
• Multi-tasking hubs where food is vital but secondary
Yankelovich © 2007/2008 28 29. Thought-Starters
• Use database systems to aggregate knowledge of
individual customers – Invite opt-in
• Personalize the relevance of what customers receive
• Can be more than menus
• The experience itself
• The interaction with staff
• Reminders and thank you’s via mail or email
• Discounts and promotions
• Special events, parties or family gatherings
• Special treatment on special occasions
• Have favorite items on the table or ready to serve
• Personalization in every location across the country
Yankelovich © 2007/2008 29 30. A State of More
More lifestyle options
More relevant/meaningful rewards
More marketplace skills
More marketplace options
Less compromise
Yankelovich © 2007/2008 30 31. “The Magical Number Seven, Plus or Minus Two”
George A. Miller, The Psychological Review, 1956, vol. 63, pp. 81-97
If the human observer is a reasonable kind of communication
If the human observer is a reasonable kind of communication
system, then when we increase the amount of input information
system, then when we increase information
the transmitted information will increase at first and will
the transmitted information will increase at first and will
eventually level off at some asymptotic value. This asymptotic
eventually level off at some asymptotic value. This asymptotic
value we take to be the channel capacity of the observer: it
value we take to be the channel capacity of the observer: it
represents the greatest amount of information that he can give us
represents the greatest amount of information that he can give us
about the stimulus on the basis of an absolute judgment. The
about the stimulus on the basis of an absolute judgment. The
channel capacity is the upper limit on the extent to which the
channel capacity is the upper limit on the extent to which the
observer can match his responses to the stimuli we give him.
observer can match his responses to the stimuli we give him.
Let me summarize the situation in this way. There is a clear and
Let me summarize the situation in this way. There is
definite limit to the accuracy with which we can identify
definite limit to the accuracy with which we can identify
absolutely the magnitude of a unidimensional stimulus variable. II
absolutely the magnitude of a unidimensional stimulus variable.
would propose to call this limit the span of absolute judgment,
would propose to call this limit the span of absolute judgment,
and II maintain that for unidimensional judgments this span is
and maintain that for unidimensional judgments span is
usually somewhere in the neighborhood of
usually somewhere in the neighborhood of seven .
.
Yankelovich © 2007/2008 31 32. Yet, Apparently Consumers Are Coping
I’m overwhelmed by all of
the sources of information
available today
61% 47%
1996 TODAY
Yankelovich © 2007/2008 32 33. A New Movement is Emerging
FROM
Control More/Shoot for More
TO
Control More/Shoot for Precision
Yankelovich © 2007/2008 33 34. Consumer Strategies for Navigating a World of “More”
Consumer control evolves!
Pinpointing
Splicing
Limelighting
imPerfecting
Yankelovich © 2007/2008 34 37. Pinpointing: Wiki Backlash
There are too many people these
days giving their opinions who
know much less than they think
they do
88 %
TODAY
Yankelovich © 2007/2008 37 38. Pinpointing: Tighter Circles in Demand
Important in your personal life today:
Spending time with people who are as
passionate and knowledgeable about
the things you care about as you are
55 %
TODAY
Yankelovich © 2007/2008 38 42. Pinpointing: Wonder What Walt Would Think
“The home of Mickey Mouse, Tigger
and Tinkerbell has banned kids from
its fanciest restaurant. Beginning
this week, children under 10 are no
longer welcome at Victoria & Albert's
in the Grand Floridian Resort & Spa.
Victoria & Albert's is Walt Disney
World's only restaurant with an AAA
five-diamond rating. quot;We want to be
the restaurant that's available for
that adult experience,quot; said general
manager Israel Perez’.”
(“Disney World Restaurant Bans Children,” Akron
Beacon Journal, 01.05.08)
Yankelovich © 2007/2008 42 43. Pinpointing: Looking Ahead
Make consumers smarter
Don’t pile it on
Instead, pinpoint it
Facilitate ‘narrow’ engagement
Start with a profile
Management tools for consumers to use
Consolidation & aggregation
Training & hosting
The best place to find more
Yankelovich © 2007/2008 43 46. Splicing: My Pieces, My Puzzle
(Among those online) Have customized a
web page or search engine to show the news
and information of most interest to you
24 %
TODAY
Yankelovich © 2007/2008 46 47. Splicing: My Shows, My Schedule
Watch TV programs later than when they
originally aired, not including reruns
(e.g., streaming video on the Internet, DVR,
On-Demand, on an iPod, etc.)
34 %
TODAY
Yankelovich © 2007/2008 47 48. Splicing: My News, My Sources
In a survey measuring knowledge of
current events (conducted by the Pew
Research Center), half the people who
did the best said they got their news
from at least seven outlets a day
(“Best-Informed Also View Fake News,” The New York Times,
(“Best-Informed Also View Fake News,” The New York Times,
04.16.07)
04.16.07)
Yankelovich © 2007/2008 48 49. Splicing: Looking Ahead
Consumers demanding new collaborations
Consumers to expect more – innovative products
have already given them a taste of the potential of
splicing
Focus on combinations of multiple products – even
of very different sorts or applications
It means expanded roles and non‐traditional
players in many categories
Consumers are changing their standards of success
Yankelovich © 2007/2008 49 50. Splicing: TasteBooks
“For $34.95, a cooking enthusiast can select up
to 100 recipes, which come encased in a ring-
binder with a customized cover. The site also
accommodates those who want to fill a volume
with their own recipes or with recipes from
sites other than Epicurious.”
(“A Cookbook of One’s Own
(“A Cookbook of One’s Own
from the Internet,” The New
from the Internet,” The New
York Times, 11.12.07)
York Times, 11.12.07)
Yankelovich © 2007/2008 50 51. Splicing: Mix and Match Meals
“Every chef puts his or her own spin on what is
often described as ‘global tapas,’ but at small-
plate restaurants across the country you'll find a
spirited atmosphere that encourages a meal
designed to be shared by as many diners as
possible. Plenty of table reaching and plate
shuffling ensures that everyone can taste
everything.” (“Restaurant trend: Small-Plates Dining,”
lifestyle.msn.com)
Yankelovich © 2007/2008 51 52. Splicing: Alternative Yoga
“…has teamed up with Vosges chocolate…to
offer yoga and chocolate seminars that begin
and end with a truffle. Much like traditional
yoga practices, he uses the sweet to make
participants more aware of their senses, asking
them to savor each little bite and its distinct
taste…” (“Nude Yoga and Other Twists
to the Practice,” Newsweek, 08.20.07)
Yankelovich © 2007/2008 52 53. Splicing: Think About It
Playlists
Two Tastes In One
Wrist Watch
With A Pulse
Glucose Meter/Phone
Technology Mash-Ups
Yankelovich © 2007/2008 53 54. Splicing: Mixing Business with Pleasure
A day at the office can be a downright assault on your
sense of smell. Between Harry’s halitosis, Penny’s
pungent perfume, and Stanley’s tuna on onion roll,
you can’t get a breath of fresh air. Don’t lose your
cool. Save your sniffer (and your sanity) with the USB
fragrance oil burner. Plug this puppy into your
computer, add a drop of
oil, and be instantly
bathed in soothing scent.
(DailyCandy, 10.03.07)
Yankelovich © 2007/2008 54 58. Splicing: Retail Health Care
The medical services available in
many grocery and retail stores are
just as good as those available in
traditional medical facilities
42 %
TODAY
Yankelovich © 2007/2008 58 63. Limelighting: Required in an iPriority World
People who don’t take time for
themselves end up taking it out
on others
80 %
TODAY
Yankelovich © 2007/2008 63 64. Limelighting: Putting a Lid On It
(Among those working full/part time)
Important in your personal life today:
Leaving work problems in the office
57 % 62 %
2004 TODAY
Yankelovich © 2007/2008 64 65. Limelighting: Just Say “No!”
Rate skills highly: Being able to
say “no” when you need to
70 %
TODAY
Yankelovich © 2007/2008 65 66. Drawing the Line: On Health, Too
Likely to be true ten years from
now: certain methods or
ingredients used in preparing food
will be against the law
54 %
Millennials 55%
Xers 49
Boomers 53 TODAY
Matures 63
(5-7 on 7-pt. scale, where 7 is rate skills as “extremely likely” and 1 is rate skills as “not at all likely”)
Yankelovich © 2007/2008 66 67. Drawing the Line: They Need Your Help On This…
Restaurant portions are too large
and cause me to eat more than I
normally would
Men
Women
48%
61 55 %
Millennials 49 TODAY
Xers 58
Boomers 51
Matures 62
Yankelovich © 2007/2008 67 68. Limelighting: Finding Family Time
(Among parents with children <18 in HH)
It is important for families to eat dinner
together every night
60 % Moms 62%
TODAY Dads 57%
Yankelovich © 2007/2008 68 69. Limelighting: A “24” Weekend
“DVDs have upended how we watch television,
transforming shows from disposable weekly units into
8-, 12-, 22-hour movies. ‘We get a lot of people who
tell us they don’t even watch
the show when it airs,’ says
Joel Surnow, co-creator of
‘24.’ They wait for the DVD
and watch it all at once’.”
(“Why TV Is Better than the Movies,”
(“Why TV Is Better than the Movies,”
Newsweek, 02.26.07)
Newsweek, 02.26.07)
Yankelovich © 2007/2008 69 70. Limelighting: Longer Spa Appointments
“…spa-goers are requesting longer treatments —
allowing for extended, enhanced and more
meaningful spa experiences…[spa-goers are]
booking time instead of a treatment… [this]
gives the consumer the flexibility to
choose what they want based on how
they feel when they arrive at the spa”
(The International Spa Association Key Spa Industry
Trends for 2006)
Yankelovich © 2007/2008 70 71. Limelighting: The Comforts of Home
staycation – A vacation that is spent at
one's home enjoying all that home and one's
home environs have to offer.
Even though I live and work in New York, I don't always get to
enjoy all it has to offer, what with my work commitments, but I
sure did have an awesome time here during my spring staycation.
(urbandictionary.com)
Yankelovich © 2007/2008 71 72. Limelighting: My Private Get-Away
(Among married/living together)
I would feel comfortable taking a
vacation without my spouse or
significant other
45%
TODAY
Yankelovich © 2007/2008 72 73. Limelighting: Sleeping Alone
“In a survey in February by the NAHB, builders and
architects predicted that more than 60 percent of custom
houses would have dual master bedrooms by 2015…some
builders say more than a quarter of their new projects
already do. [One expert says,] ‘The growing need for
separate bedrooms represents the speed-up of family life —
women’s roles have changed — and the need for extra
space eases the strain on the relationship. If one of them
snores, the other one won’t be able to perform the next
day. It’s nothing to do with social class, and it’s not
necessarily indicative of marital discord’.”
(“To Have, Hold and Cherish, Until Bedtime,” The New York Times, 03.11.07)
(“To Have, Hold and Cherish, Until Bedtime,” The New York Times, 03.11.07)
Yankelovich © 2007/2008 73 74. Limelighting: Somehow I Still Don’t Get It Right
Scheduling down time or “me” time
Important in Describes
personal life you
Total 51%
% 33%
%
Men 46 33
Women 57 34
Moms 54 27
Yankelovich © 2007/2008 74 75. Limelighting: Looking Ahead
Reflect and facilitate desires to do just one thing
Remember: Multi‐tasking may be one means to an
end, but mono‐tasking may be the ideal solution
Help remove barriers to a singular focus
Give consumers a helping hand through coaching,
tutoring, insider tips, etc.
Declutter and refine the consumer’s experience
with your brands and communications
Yankelovich © 2007/2008 75 79. imPerfecting: The Push Back on Airbrushing
“In an age when Americans’ appetite for
celebrity snapshots seems insatiable, retouching
photographs has become routine. But some
magazines are getting
too liberal with their
edits, and stars are
fighting back.”
(“‘22-inch Guns’ Stun Andy
(“‘22-inch Guns’ Stun Andy
Roddick,” ABCnews.go.com,
Roddick,” ABCnews.go.com,
05.29.07)
05.29.07)
Yankelovich © 2007/2008 79 80. imPerfecting: Not Every Child Is “Perfect”
“honest baby was founded by a mom, frustrated with
the myth of perfect parenting…the more we try to
mold the most social, well-rested, sweet, funny,
gentle, articulate child on the planet, the more it
becomes apparent there is not such thing…so we felt
there needed to be a place where there would be no
judgments…” (honestbaby.com)
(honestbaby.com)
Yankelovich © 2007/2008 80 81. imPerfecting: The Sweet Smell of…Nothing
“Last year in the United States, spending on upscale women’s
“Last year in the United States, spending on upscale women’s
fragrances declined, as part of a multiyear trend. The group said $1.97
fragrances declined, as part of a multiyear trend. The group said $1.97
billion was spent, down from $2 billion in 2002.
billion was spent, down from $2 billion in 2002.
“Like Ms. Ware, more women are forgoing scent altogether. Last year,
“Like Ms. Ware, more women are forgoing scent altogether. Last year,
about 15 percent of women said they did not wear fragrance, up from
about 15 percent of women said they did not wear fragrance, up from
13 percent in 2003, according to a survey of 9,800 women conducted by
13 percent in 2003, according to a survey of 9,800 women conducted by
NPD.
NPD.
“That may sound like a small number, but nationally that translates into
“That may sound like a small number, but nationally that translates into
two million more women who are saying ‘I don’t wear fragrance,’ ” said
two million more women who are saying ‘I don’t wear fragrance,’ ” said
Karen Grant, the senior beauty industry analyst at NPD. “Eighty-five
Karen Grant, the senior beauty industry analyst at NPD. “Eighty-five
percent of women are still buying fragrance, but an increasing number
percent of women are still buying fragrance, but an increasing number
tell us they are wearing fewer scents, less frequently or not at all.”
tell us they are wearing fewer scents, less frequently or not at all.”
(“The Sweet Smell of…Nothing,” The New York Times, 02.14.08)
(“The Sweet Smell of…Nothing,” The New York Times, 02.14.08)
Yankelovich © 2007/2008 81 82. imPerfecting: “Ugly Fruit”
“Waitrose, the supermarket chain associated with a certain
kind of aesthetic perfection, has announced that it is to sell
ugly fruit and veg at reduced prices…knobbly strawberries
and bendy sticks of rhubarb will have to bear the stigma of a
‘discounted’ price tag, but still organizations such as Friends
of the Earth are hailing the decision as a victory…a sign that
we are beginning to accept the fact that this, actually, is
what Britain's native harvest looks like when it hasn't been
genetically engineered, smothered in pesticide or tarted up
for a photo shoot in Elle Decoration.”
(“An Idyllic Nightmare,” The Guardian, 06.21.06)
(“An Idyllic Nightmare,” The Guardian, 06.21.06)
Yankelovich © 2007/2008 82 83. imPerfecting: Striking a Chord?
“For my money, I think it’s great when the TV
world, which is always so formulaic and so
predictable, veers completely out of control.
It’s breathtaking TV.”
Peter Carlin, TV columnist for The Oregonian,
speaking of late-night TV hosts Jay Leno,
Conan O’Brien, and Jon Stewart returning to
the air without their writers (“Late-Night TV
Returns with an Entertaining Edge,” NPR Weekend
Edition, 01.05.08)
Yankelovich © 2007/2008 83 84. imPerfecting: Looking Ahead
Revisiting Real…
imPerfection can be an improvement
The fresh and unaffected, even if raw and
imperfect, is often welcome
Liberate yourself from “the script” and speak
to consumers with a new spirit of collaborative,
honest engagement
Tighten up on the high‐gloss language that all
too often nowadays rings hollow
Give consumers leeway to see things their own
way and define things on their own terms
Yankelovich © 2007/2008 84 86. The Revolution is Over. Consumers Won.
Assuming control and then
keeping it strong in many ways
Consumer empowerment is now a given
The only question is how empowerment will evolve
and manifest itself in the marketplace
The opportunity lies in connecting with this evolution
in how consumers are engaged with brands
Yankelovich © 2007/2008 86